The new iPad is seeing some stiff competition for sales, but it’s not the Samsung Galaxy Tab 10.1, the Kindle Fire or any other manufacturer not named Apple. Competition for consumer sales are coming from Apple’s previous generation iPad 2. Consumer Intelligence Research Partners provides a breakdown of sales between March 16th through the end of April. The iPad 2 accounts for 41 percent of sales, largely due to the $399 price point, which is $100 less than the entry-level 16GB new iPad.
With the pricing move to $399 for the iPad 2, Apple has been able to attract budget conscious buyers who might have previously considered a lower-cost tablet such as the $199 Kindle Fire. A rumored low-cost 7-inch iPad could further increase sales and demand, bolstering Apple’s dominating position in the tablet market.
No real surprise here. Despite the inclusion of features like the retina display, the iPad 2 is still a fantastic product and an incredible value at $399.
Source: CIRP via All Things D